Introduction:
The world of construction is vast and ever-changing. Along with these changes, there are countless myths and misconceptions that have become widely accepted. It's time to debunk these myths and set the record straight, so you can make informed decisions when embarking on your next construction project.
The More Planning, The Better:
While planning is essential for any project, there's a point of diminishing returns. Over-planning can lead to analysis paralysis, and it's crucial to remember that no project can be completely controlled or predicted. On smaller projects you will find that the cost of a team of designers and consultants to help with planning exceeds the cost of site staff so yes there is a point at which more planning doesn’t make sense even when you factor in the potential risk of repairing minor defects. Planning should focus on the big things and the critical things that will stop the project from being successful and sometimes these are lost in the quest to organise and plan every last detail.
Micromanagement Equals Success:
Micromanagement may seem like a way to ensure everything goes according to plan, but it often backfires. Having a trusted team onsite with autonomy to make the best decisions drawing on their expertise can lead to better outcomes and higher levels of satisfaction for everyone involved. You will never be able to be there to make every decision and in the course of any construction there are thousands of decisions to be made. A much better strategy is to focus on the big things that if done wrong are hugely problematic and also providing a framework and empowering the people on site to make the relevant decisions on your behalf, knowing that at some point they will make the wrong decision and something will need to be rectified - in the scheme of a project this will still put you miles ahead.
If you plan financials carefully enough, your build will end on budget:
There are two things wrong with this assumption. First every project no matter how carefully planned has risk and uncertainty. Some risks you may know others are so called unknowns you can’t predict. Then there is random statistical chance that is part of life.
The second problem is that - even if you have a detailed set of plans - there are things that will come up that are either not on the plans that need to be done but not evident from the plans, like penetrations in brickwork for AC or cleaning - or sealing tiles. Or a mistake with a delivery that has to be returned. It is always best practice to ask - what do comparable projects typically cost?
Competitive Tendering Guarantees Best Value:
While competitive tendering can help you find a good deal, it's not a guarantee. Sometimes, focusing on quality and long-term value can save you more money in the long run. By taking the cheapest price you may be taking on more risk than you wanted or other unknowns. There are two reasons why competitive tendering can fail - fixed price contracts are statistically shown to earn higher margins for the builder or contractor. The smaller the business the less likely it is to be able to absorb the loss.
Locking in Prices provides the best value
While locking in prices might seem like a smart move, it can limit your options and potentially lead to poor quality outcomes. The problem with locking in prices with a builder is that because they are limited to the value of the contract they are incentivised to save money to increase their margin - so the builder faces a dilemma; they can opt to cut costs and make more money or focus on quality outcomes and reduce their own profits. Even if you have a tight set of plans and specifications the variance in quality of outcome is substantial. The other problem with locking in prices is that you will normally be up for penalties for changing things.
DIY Always Saves Money:
DIY projects can indeed save you money, but they aren't always the best option. If you lack experience or the necessary skills, it might be more cost-effective to hire professionals who can get the job done right the first time and potentially have a superior outcome. And you really need to factor in the indirect costs of DIY such as the stuffing around trying to work things out and the opportunity cost of doing it yourself. If you’re a professional earning $150 per hour then really why are you paying yourself $10 per hour to do work at a lower standard that will take longer - are you not better off finding more work in the profession you’re already in like some out of hours consulting. DIY makes sense if you love DIY but does not always translate into a money saver.
Green building is more expensive:
Sure if you swap out single glazed windows for double glazing then the windows will cost more but green building is a lot more than swapping out parts for high performance options. If the whole project is designed with sustainability in mind it does not have to be more expensive to build and that’s even before you consider the building lifecycle. The main problem with green building is that home owners only see the sticker when they need to swap things out to course correct well into the project rather than planning sustainability in from the outset.
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